Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) Q4 2022 Earnings Call Transcript

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For the vitrification, 1 million gallon model, about 340,000 gallons. So, that’s only one-third was vitrified. And the other two-thirds was secondary waste that has to be treated in ways other than vitrification. Data was supplied relative from Hanford contractors building the vitrification plant. With vitrification it requires 2,000 degrees Fahrenheit, 3 million gallons of diesel fuel, which droves off over 20,000 metric tons of CO2, 2 million gallons of water, which mainly is contaminated and becomes secondary waste, 151 truckloads of hazardous chemicals, the amount of energy used would energize 15,000 homes. There was a statement that vitrification could cause 36 high-consequence hazards. The model used assumes a 70% efficiency, but vitrification plants typically have efficiencies around 40%, and this should take longer, be more expensive and possibly worsen the vitrification outlets.

Perma-Fix can treat now 300,000 gallons per year, which is equivalent to 1 million gallons of inputted waste into the vitrification plan as maybe one-third will be vitrified. Perma-Fix has related, they can scale up to 3 million treated gallons per year. This is equivalent to 9 million gallons of waste input into the vitrification plant. And note, the vitrification plant would create 6 million gallons of secondary waste. Governor Inslee of Washington State was interviewed in August 22, by the New York Times. The governor touted how it was early in calling for climate change. The legislator of Washington State has advocated concern regarding CO2 and environmental responsibility. Recently, our government has stated that any government contractor doing over $7 million a year must be responsible in its environmental profile, relative to the above concern for environmental strain, one can question how the political ecosystem of a Washington state for most of vitrification plants.

The political ecosystem of Hanford is vitrified in its focus that the tank waste needs to be vitrified. There seems to be no issue the tank, the secondary waste would be treated by Perma-Fix, which in my mind is actually moronic to our position to Perma-Fix in mobilizing and solidifying waste with concrete directly. As a problem solver, I do not understand why Perma-Fix cannot start treating the waste in the TSCR now as the vitrification continues to be built. Then there would be two systems treating waste and help get the waste treated faster, provide backlog. The Hanford reservation is in an earthquake zone and we know climate change is real. There needs to be an urgency because a black spot with the Black Swan event, there will €“ this will negate no treatment of the waste.

In January 2023, DOE published a new ROD, rules of decision, how the waste would be treated with vitrification. This is plan of the ROD last published in 2013. It was quite a complement to Perma-Fix’ unique ability that DOE proposed 2.2 million gallons of secondary waste would be treated by Perma-Fix Northwest. And there is products that would go to a Midwestern plant of Perma-Fix 2. The ROD is framed so the treated secondary waste has come back to Hanford and buried there. This is an important nuance, implying the nearness of Perma-Fix plants. And someone asked the question, by the way, in the right is that strictly says nothing will be shipped other than by truck. And two, implying the treatment prowess of Perma-Fix. So, ROD is also very interesting with the section on season nitro.

This is a potential hazard created in the vitrification plant, which under certain heated conditions can create cyanide gas, all the assumed nitro would come direct to Perma-Fix.

Mark Duff: Stephen, this is Mark. I think we are going to probably have to wrap up, do you have €“ can you conclude on that, Steve, before we move forward?

Stephen Fein: Excuse me?

Mark Duff: We need to move on, I am afraid. Are you close to the end, or can you have a conclusion that you can wrap up?

Stephen Fein: I have two more paragraphs.

Mark Duff: Okay.

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